Benchmark indices broke psychological levels in trade amid broad-based sell-off as banking, metal and realty shares slumped.
The Sensex cracked below the 60,000-mark and fell sharply to a low of 59,778, while the Nifty nose-dived below the 18,000 mark to a low of 17,799.
At the closing bell, the BSE Sensex stood lower by 1,159 points (down 1.9%).
Meanwhile, the NSE Nifty plunged 354 points (down 1.9%).
IndusInd Bank and L&T were among the top gainers today.
Adani Ports and ITC, on the other hand, were among the top losers today.
The SGX Nifty was trading at 17,905, down by 311 points, at the time of writing.
The BSE MidCap index and the BSE SmallCap index ended down by 1.4% and 1.6%, respectively.
Sectoral indices ended on a negative note with stocks in the realty sector, banking sector and power sector witnessing selling pressure.
Shares of IndusInd Bank and Grindwell Norton hit their respective 52-week highs today.
US stock futures are trading on a flat note today with the Dow Futures trading up by 26 points.
The rupee is trading at 74.92 against the US$.
Gold prices for the latest contract on MCX are trading down by 0.1% at ₹47,927 per 10 grams.
Here are four factors why Indian stock markets crashed today
Weak global cues: Asian stock markets witnessed selling today, extending falls on Wall Street as investors awaited a monetary policy decision from the Bank of Japan and European Central Bank (ECB) later in the day.
The Hang Seng and the Shanghai Composite ended down by 0.3% and 1.2%, respectively. The Nikkei ended down by 1% in today’s session.
FII outflows: Relentless selling by foreign institutional investor (FIIs) is one of the key reasons for this correction in the market.
According to NSE data, FIIs sold ₹1.9 billion worth of shares on Wednesday.
Inflationary concerns: Inflation and a slowdown in global growth momentum are other concerns amid expensive valuations.
India’s central bank may have brought down inflation worries, but price pressures could potentially re-emerge soon.
On 8 October 2021, the Reserve Bank of India lowered the inflation forecast to 5.3% for the ongoing financial year from its earlier estimate of 5.7%.
However, while the central bank has projected inflation at 5.2% in the next financial year, its estimates show that consumer prices may heat up by the March quarter.
Profit booking: Apart from the above, losses were also seen as share market succumbed to profit-booking.
Most of the profit-booking was seen in the realty and banking sector today, with stocks such as ICICI Bank and Adani Ports dragging the benchmark index lower.
We will keep you updated on how these factors develop in the coming days and what effect they have on Indian stock markets. Stay tuned!
In news from the finance sector, Bajaj Finserv was among the top buzzing stocks today.
Bajaj Finserv share price gained 1.3% after the company reported 13.8% rise in consolidated net profit to ₹11.2 billion on a 19.6% increase in total income to ₹180 billion in September quarter of 2022 compared with the last year.
Profit before tax in Q2FY22 stood at ₹27.9 billion, up by 29.5% from ₹21.6 billion in the same period last year.
Bajaj Finserv said after the disruption caused by the second wave of the pandemic, recovery in the business gathered momentum on the back of reopening of the economy in most states, rapid vaccinations and policy support.
The non-bank lender said the business has now shifted focus to growth and remains ‘cautiously optimistic’ about its prospects for the remainder of the current financial year.
The company’s subsidiary Bajaj Allianz General Insurance reported a 28% year-on-year (y-o-y) rise in net profit to ₹4.3 billion in the reported quarter. The business’ gross written premium jumped 21% y-o-y to ₹50.3 billion in the quarter.
Bajaj Allianz Life Insurance also reported a solid quarter of earnings as new business premium rose 62% y-o-y to ₹22.3 billion in the quarter. Renewal premium in the quarter was up 22% whereas, gross written premium climbed 42%.
Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group.
Bajaj Finserv share price ended the day down by 0.2% on the BSE.
Speaking of stocks, here is an illustration of the four phases that a stock goes through during its life cycle. The cycle repeats itself after the stock goes through all these for stages.
View Full Image
This cycle defines everything in markets. If you can master this cycle, then nothing can stop you from making huge profits.
Moving on to news from the IPO space…
IPOs worth around ₹70 billion to open in November first week
Initial public offerings (IPOs) season is back with a bang as three companies are set to open their bidding process for public listing.
PolicyBazaar, Sigachi Industries and SJS Enterprises are looking to altogether raise ₹66.3 billion in the first week of November. All three IPOs will open on 1 November and close on 3 November.
Meanwhile, investors are awaiting announcement on IPO dates of fintech players Paytm, MobiKwik and edible oil maker Adani Wilmar, which may also open in November.
PB Fintech, the parent company of online fintech marketplaces PolicyBazaar and PaisaBazaar, is coming with an IPO next week. The issue size of the IPO is ₹57.1 billion.
While the Hyderabad-based manufacturer of cellulose-based excipients, Sigachi Industries, is looking to raise ₹1.3 billion by selling 7.7 million shares. The company is engaged in the manufacturing of microcrystalline cellulose, the polymer that is widely used for finished dosages in the pharmaceutical industry.
SJS Enterprises, one of the leading players in the Indian decorative aesthetics products industry, will also open its IPO alongside PolicyBazaar and Sigachi Industries on 1 November 2021. The IPO consists of a pure offer for sale (OFS) of ₹7.1 billion by Evergraph Holdings and ₹900 million by K.A. Joseph.
How all these IPOs sails through remains to be seen.
This article is syndicated from Equitymaster.com
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